EU officials have stated that around €380 billion worth of EU exports will be affected by US President Donald Trump’s new tariffs, which cover approximately 70% of all EU exports to the United States, reports RTE.
Mr. Trump has introduced a minimum 10% tariff on most imported goods, with an increased 20% rate specifically targeting EU products. This move escalates a global trade conflict that could contribute to inflation and slow down both US and global economic growth.
The EU has announced it will take immediate action in response to the 25% tariffs on steel and aluminium imposed by the US on 12 March. However, officials said they need time to assess the impact of the latest tariffs before determining further countermeasures, reports RTE.
One senior official declared that the EU intends to “hit the US where it hurts.”
According to European Commission estimates, the US will generate €81 billion in revenue from European import tariffs, compared to the current €7 billion—a substantial increase.
Senior EU officials have denounced the tariffs as unlawful and in violation of World Trade Organization rules, reports RTE.
Trade experts have also warned that Ireland should not feel reassured by the exclusion of pharmaceutical goods from the tariffs, noting that the Trump administration has identified pharmaceuticals as one of five strategic sectors—alongside semiconductors, wood, and cars—that have already faced US trade investigations leading to tariff hikes.
One trade expert suggested that pharmaceuticals could still be targeted, stating, “We would be quite unsure whether one could breathe a sigh of relief that was noted yesterday,” reports RTE.
The European Commission has been working with member states to formulate a response to the steel and aluminium tariffs, with a vote on the EU’s official reaction scheduled for 9 April.
Officials have not ruled out targeting US services, intellectual property, or public procurement in retaliation.
“We’re not taking any options off the table today or tomorrow,” one official said. “We are carefully assessing the situation before determining an effective and proportionate response,” reports RTE.
European Commission President Ursula von der Leyen strongly condemned the tariffs, describing them as a major blow to the global economy.
She warned of severe consequences, stating that the move will negatively impact millions of people, including some of the world’s most vulnerable populations.
Ms. von der Leyen acknowledged concerns over global trade imbalances but criticized the US for using tariffs as a primary tool.
“I am ready to support efforts to modernize the global trading system,” she said. “But resorting to tariffs as the first and last solution will not fix the problem,” reports RTE.
She emphasized that the EU has always been open to negotiations with the US to reduce trade barriers and noted that European Commission Vice President and Trade Commissioner Maroš Šefčovič is in ongoing discussions with US officials.
However, she made it clear that the EU is prepared to implement countermeasures if negotiations fail, reports RTE.
Speaking in Samarkand, Uzbekistan, ahead of an EU-Central Asia summit, Ms. von der Leyen confirmed that the EU has finalized a response to the initial steel and aluminium tariffs and is now working on additional measures to counter the 20% tariff on EU products.
“We are finalizing our first package of countermeasures and preparing further responses to protect European interests and businesses,” she said, reports RTE.
She also cautioned against the risk of unfair trade practices following the US decision, stating, “We will not accept dumping on our market.”
However, she expressed hope that diplomatic talks could still resolve the issue, saying, “It is not too late to address concerns through negotiations,” reports RTE.
German Chancellor Olaf Scholz condemned the US tariffs, calling them “fundamentally wrong” and an “attack on a trade system that has created prosperity worldwide, including for the US itself.”
He urged cooperation over conflict, stating, “Europe will respond united, strong, and proportionately to this decision.”
Italian Prime Minister Giorgia Meloni also criticized the tariffs, warning that a trade war would weaken the West, reports RTE.
“The US tariffs on the EU are a wrong decision that serves neither side,” she said in a social media post.
She pledged to push for a deal with the US to avoid escalating tensions, stating, “We will do everything we can to work towards an agreement that prevents a trade war, which would ultimately benefit other global players at the West’s expense,” reports RTE.
Ms. Meloni, who has positioned herself as a mediator between the EU and the US, said Italy would coordinate with European partners on the response while prioritizing its own economic interests.
British Prime Minister Keir Starmer also weighed in, warning, “Nobody wins a trade war,” reports RTE.
He emphasized that such disputes are “not in our national interest” and stressed that the UK maintains a “fair and balanced” trade relationship with the US.
Mr. Starmer added that negotiations on an “economic prosperity deal” with the US are ongoing but stressed that any agreement must align with the UK’s national interests, reports RTE.
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